GBP/AUD - A Report Brought to You by Q8 Trade
A brief history of the two currencies
British Pound (GBP)
The official name for this currency is Pound Sterling and is mainly used in official contexts, as well as when distinguishing between the United Kingdom currency and other currencies of the same name.
As for the general form, it is called the term “Pound”, and it is sometimes called the term “Sterling” in the financial markets as a name and not as a numerical value.
As if it is said: “The amount has been accepted in sterling” and it is not said: “The amount is ten pounds.”
The term British Pound is also used formally and if it is less than its predecessor.
If it is not the official name of the currency, it is called colloquially or “Quid”.
Exactly the origin of the word “sterling” is not known, and it is said that the name dates back to the Anglo-Saxon times when the name sterling was called “sterlings”.
As was the large amounts of money paid using a pound of sterling pounds pounds of sterlings It is also said that Sterling was a silver penny used in Britain during the era of the Normans in approximately 1300, according to a number of sources, including the Oxford Dictionary.
And the story continues…
Once the decimal system began in 1971, the pound or pound was divided into 100 pence (it was called “New Pence” until 1981). The pound was before the decimal system divided into 20 shillings, and each shilling contains 12 pence, and the shilling symbol is “s” – and the letter s did not refer to the first letter of the word shilling, but was referring to the Roman coin “solidus”.
In the fifties of the last century all the coins of George III, IV, and William IV disappeared from circulation, but coins containing pictures of kings and queens from Queen Victoria and beyond are still in circulation, as silver coins are replaced by coins of components that are a mixture of copper Nickel, and that is in 1947, and as the 1960s came, silver coins became scarce and hardly ever seen.
However, the silver shilling “copper-nickel” (from the post-1816 period) and the fluorine (2 shillings) legally traded beyond the decimal system (representing 5p and 10p respectively) and the 6-penny currency continued from 1816 onwards after the amendment in 1980 to two and a half pence.
The cable is one of the oldest currencies still trading around the world.
Australian dollar (AUD)
Did you know?
The Australian dollar is not only the currency of Australia.
It’s also the currency of Antarctica, Christmas Island, MacDonald Island, Kiribati, Norfolk Island, Nauru and Tuvalu!
The dollar in Australia is denoted by the symbol $ or $ A or AU $, and the ISO symbol is AUD:4217. It release date is 1966.
The Australian dollar is the main currency in Australia and it is ranked sixth for the most heavily traded currencies in the market, as it represents the equivalent of about 4% of daily trading from speculators in the Forex markets.
The Australian dollar is a commodity currency, as it has a close and close relationship with gold. The strength of the Australian dollar has increased dramatically in recent years, mainly due to the growing demand of the Chinese economy for Australian raw materials.
Australia is the largest exporter of coal and iron ore, so the Australian dollar depends largely on commodity prices.
Here’s a quick history lesson:
During the commodity recession in 2015 that saw the price of crude oil drop to its lowest level in ten years and the prices of iron ore and coal alike declined, the Australian dollar weakened sharply, falling more than 15% against the US dollar, and almost reached the level of parity with the value of New Zealand dollar, a level not seen since the 1970s.
The first true Australian coins were created after the discovery of gold in 1851. The state coffers and commercial banks created their own banknotes backed by the gold metal.
Initially, the Australian dollar was pegged to the British pound, and later it was linked to the US dollar. In 1983, the Australian dollar turned into a floating exchange rate against the US dollar.
And here’s some trivia:
The value of the Australian dollar fluctuates according to some factors that are represented in US interest rates and international commodity prices, especially iron ore and some other precious metals.
Who should trade in the GBP/AUD?
- Those who have a specific view of the potential and expected relative performance of the two economies as there is a strong and solid friendship and longstanding alliance between the United Kingdom and Australia BUT their economic fortunes are not always the same.
- Those who believe that the Australian dollar has not abandoned its role as a clear and key guide in trading in commodities like iron ore, and believes that it is aware of the direction in which resource prices will go
- Daily traders, through the continuous movements between these two currencies, which were issued on two opposite sides of the world as professional traders can make profits.
What should I know about the British pound and Australian dollar?
The pound sterling is a much larger currency than the Australian dollar, which is not surprising given the relative size of the two economies, as the UK’s GDP reached about $2.8 trillion, while Australian GDP reached about $ 1.19 trillion.
While sterling is a reserve currency, central bank records sweep across the world and contribute to the support of the IMF’s operations, the Australian dollar is not.
This may be a distinctive feature of the Australian dollar, as it is less traded than the British pound and therefore, may be less prone to speculation and less prone to shifts in political trends.
The lasting stability of Anglo-Australian relations was not reflected in the relationship between the two currencies as during the past 1960s, the strength of the Pound sterling swung from a high of $2.65 to $1.44.
Until the early 1970s, Australia was considered part of the Sterling area, a currency bloc based on the Commonwealth Federation that was trading through the British pound.
Factors affecting GBP/AUD
Relative interest rates: In recent years, Australian interest rates have been much higher than those imposed in the United Kingdom.
This is largely due to the fact that the financial crisis had a much lower impact in Australia than in other countries such as Britain, and therefore there was less need for very low interest rates to stimulate the Australian economy, therefore, these high rates contributed to making the assets denominated in the US dollar more gravity.
The process of trading with payoff rates: These rates prompted some investors to borrow through countries that impose low interest rates such as Britain, then the proceeds are then transferred to other countries that impose higher interest rates such as Australia.
Economic theory suggests that any rise in interest rates should be erased by a fall in the exchange rate, but in good timing this can sometimes be avoided.
UK and Australia’s economic performance: The boom witnessed in emerging market economies earlier in the decade was positively reflected in Australia, as its commodities contributed to meeting the great demand from other countries such as China.
And more recently…
during a period of slowdown in growth through emerging markets, unemployment has risen, but it has declined in the UK. For the time being, the dollar exchange rate is declining, which in turn contributes to boosting exports.
Prices of commodities: Australia has a modern service-based economy with a strong banking system, but it remains a major source of commodities represented by bauxite, coal, iron ore and gold as well as diamond and tin.
It may not be useful to treat the Australian dollar as a specific investment in commodities but this aspect cannot be ignored either.
What are the basics of trading GBP/AUD with Q8 Trade?
The very first step is to simply open a trading account with Q8 Trade.
This trading platform offers derivative products, through which it will be possible to make deals on exchange rate movements without having to own the currency itself.
CFDs have become the most common way to trade in all types of financial markets so you can rely on them when trading this pair especially as it provides the trader the advantage of doubling trading funds through leverage.
What should you consider while trading the GBP/AUD pair?
The British pound and Australian dollar are strong and established currencies issued by the leading economies affiliated with the Group of Twenty.
The currency markets are characterized by abundance of liquidity and credibility, but it may be very difficult to understand the relationship between the economic and financial cycles of the United Kingdom and Australia, and the value of the Australian currency is very complex due to the fact that most of its valuable resources are priced through the price of the US dollar.
What are the advantages of trading CFDs with Q8 Trade?
Contracts for difference as an investment tool provide the investor with a wide range of advantages when compared to other traditional tools in the field of investment.
Trading during the rise and fall of markets: In the case of trading through contracts for difference (CFDs), the investor can predict the movement of markets, whether they are rising or falling, which means that there are more opportunities, such as profits that can be achieved from selling contracts for differences in a wide range of financing tools.
Investing in a large area of markets: The investor can through his dealings with Q8Trade to invest in a wide range of financial markets through the trading platform directly on the Internet, through an individual account, the investor can trade in contracts for differences in the Forex market, stocks, indices, metals, Goods, bonds and electronic transfer funds, which provide a wide range of investment opportunities.
Margin trading: Through the use of financial leverage, the investor can trade in the markets through small savings, mainly the leverage tools are considered as a loan obtained by the investor from a brokerage company, which allows him to work in a distinctive level of dealing in contracts for difference in the market from a small capital investment called “margin”.
This is what makes CFD trading much more attractive compared to other investment systems.
There are no stamps or documentation fees: There is another reason why trading through contracts for difference is an effective investment tool compared to others.
In the case of trading in contracts, there are no stamps or fees for documentation payable because contracts for differences are derivatives and not property of the asset and therefore, it does not apply to stamps or expenses documentation.
Amazing, isn’t it!
Why should you trade with Q8Trade?
Q8Trade was established in 2017, and it provides a lot of services related to trading operations through many global financial markets, whether in trading currencies, indices, commodities in addition to cryptocurrencies.
It provides an advanced platform for trading on PC’s, smartphones or directly through web browsers.
Q8Trade is the property of the Kuwaiti company, Kuwait Securities which was established in 1985 and has been operating since then. It is also worth noting that its operating company is fully licensed by the Kuwaiti Ministry of Trade and Industry.
Q8Trade provides great privileges and one of the most important is the ability for traders to open an Islamic account in order to avoid falling into prohibitions.
There’s also a demo account that’s preloaded with $25,000 virtual funds that can be used for learning and studying the platform.
You can register on the Q8Trade trading platform by going to the company’s website: www.q8trade.com.
Advantages of trading GBP/AUD with Q8Trade
Perhaps the most prominent feature of Q8 Trade, in addition to the unusually wide range of assets that can be traded, is its free-to-grow “power to grow” technology, which is available to all traders.
The Q8Trade platform also provides educational content on trading in general and on Forex trading, which may be beneficial for traders, especially beginners or less experienced and concerned about their ability to successfully trade in the market.
Education: Q8 Trade’s educational content is based on the education section of the company’s website. Section 5 contains trading guides and a glossary of Forex. Advanced trading strategies can also be provided by account managers or private consulting teams.
Bonuses and offers: The company offers a bonus of 5% of the deposits to customers who deposit a gold account and about 10% for the platinum account.
It also provides rewards for upgrading accounts for account holders from lower levels when they deposit sufficient funds to obtain an upgrade to an account.
Deposits and withdrawals: The money is deposited with Q8Trade via an easy and safe process. Deposits can be made through 4 currencies represented in the US dollar, the euro, the British pound and the Kuwaiti dinar.
Deposits can also be made through a range of means including KNET, credit cards and bank transfers as well as through a variety of e-wallets.
Withdrawals can be made using the same deposit methods except for KNET, where withdrawals are made by bank transfer.
Customer Service: Customers can communicate with Q8Trade by phone during official business hours and they can also communicate with them via e-mail around the clock.
Cryptocurrencies supported: Majority of CFD forex brokers do not offer the ability to trade through cryptocurrencies but Q8 Trade is an exception to this.
The company does not only provide Bitcoin and Ethereum but traders can also trade Ripple, Litecoin and Bitcoin Cash.